Tips

FINANCIAL TIPS FOR SINGLE MOTHERS

Being a single mother is never easy. You have to fulfil the roles of both a mother and father which is quite a demanding task that needs more than just a pocketful of cash. Setting up a house, sending your kids to school, saving up for college, providing food, clothing, dance classes, karate classes, music classes, whatever it is that pleases them, all take a good sum of money that your single paycheck might not provide for. In such situations, it is easy to panic and worries, day in and day out about how to make both ends meet so your children live the life they should. In this article we have tried to help you with this by listing out some financial tips solely for single mothers, to help you on your way.


1: ACCESS YOUR FINANCE AND EXPENSES:


Initially, you and your husband might have accessed your financial situation and chalked down your expenses and savings for your child’s future, however, once you’re on your own you have to go right back to a clean slate. A two paycheck family might have suddenly changed to a single one and hence, the first step you need to take financially is to access where you stand now. Think of how much your income is and then get realistic about things you might need to change about your lifestyle now.

2: CREATE A BUDGET:
After you’ve accessed your income and financial situation, the next step is to create a budget. This means a thorough comparison of your income and expenses. First, analyse your exact monthly income and then list down every little expense including little things like regular haircuts and doctor appointments for your kid. Finally, compare these expenses with your income and see if it tallies. If you find that it doesn’t, you might need to cut down a few more expenses or find an alternate source of income.


3: PAY OFF DEBTS:

As a single mother, it is extremely important both for your sake and your child’s that you don’t pile up any debts. In fact, try to ensure that you don’t incur any debts at all in the first place. Ifyou can’t afford it, try to avoid it. Proceed only if you think your terms are attractive and will be a very clear and real return on your investment. For instance, taking student loans for your kid to go to college can be on the list of good debts. For other minor things, ensure that you don’t have debts because the lesser you have to owe people the better chance you have of retaining your wealth and saving for a better future.

4: PROTECT YOURSELF AND YOUR FAMILY:


Protection here means to make sure that you have health insurance, life insurance, car insurance and anything else that can legally protect you in times of need when you might not have the financial support you require. Even if their dad is still around, it is important to think of what might happen to your child once you are no longer there to support them, thus take the necessary steps to keep them secure.

FINANCE TIPS FOR YOUNG ADULTS

Most of the young adults are clueless when it comes to managing your money especially when you are out there in the real world all on your own. Personal finance has yet to become a subject we learn in school so we need to take responsibility upon ourselves to tread through the water. Here are some tips for young adults so to help you be more responsible with your money.

Learn Self Control

An important life lesson to learn is the fine of delayed gratification which means not getting what you want right then and there. This is massively helpful to keep your finances in order. It might be tempting to buy something you want on credit but it is better to wait until you have saved up the money to buy it. It is a waste of time and money bothering to pay interest on something you could have otherwise just saved up and bought.

Know where the money goes

It is a good practice to know exactly where you are spending money and on what. This way you can avoid the devastating practice of spending more money than you earn. This can lead you into a spiralling cycle of debt and ruin years of your life. Also, figuring out where the money goes can help you make better choices with regards to finance and maybe even help save up a little money.

Keep an emergency fund

We have all had that point in our life when we are thrown a curveball. This can happen to anyone and at any time. Keeping an emergency fund can help you stay afloat should this happen to you. One of the most quoted mantras when it comes to personal finance is “Pay yourself first”. Having a rainy day fund can your saving grace when you find yourself in a very tight spot.

Start saving for retirement

It is never too early to start saving money. You want to give yourself the best possible life possible when you are unable to work after retirement. Saving up for retirement at a young age means that you will be able to live very comfortably when you eventually get to that point in life.

Understand taxes

Even before you receive your first paycheck you need to understand taxes and how it affects salary. This way you will be able to tell if the money that you receive after taxes will be enough to cover your immediate financial expenses with hopefully, money left over for savings.

Health Insurance

If you are uninsured and you find yourself in a serious (or minor) health problem, you can be charged thousands of dollars as medical expenses. But having health insurance means that you are not paying out of your own pocket during such an unfortunate time. Look at different providers and find the best one which in your budget. Trust me, the insurance premium payments are worth it in the long run.

You don’t need a degree to become an expert at managing one’s own finances. You just need to smart about how, when and where you spend your money and have the foresight to save money for the future when you might need it more.